ProLogis has announced that the ProLogis Japan Properties Fund II has signed an agreement to acquire three distribution facilities in Japan from Sanyo Electric Co. Ltd. and its subsidiary, Sanyo Electric Logistics Co. The total investment will be approx. &#36;118 million.

The properties include a two-building complex in Osaka that serves as Sanyo Electric Logistics' headquarters and primary distribution center, as well as an industrial facility northwest of Osaka in the city of Kobe. Combined, the three properties comprise 888,000 square feet (82,500 square meters) of industrial and office space.

Sanyo Electric Logistics will continue to occupy the facilities in Osaka under a new, long-term leaseback agreement with the fund. The Kobe facility is fully leased to Shinkai Transportation Systems, a Japanese logistics services provider that will remain at that location under a multi-year lease.

"We're very pleased to announce this acquisition," said Masato Miki, co-president of ProLogis Japan. "It significantly strengthens our relationship with Sanyo, one of the world's great electronics companies, and builds our already sizeable portfolio of Japanese industrial properties.

"The transaction also underscores dynamics in the Japanese market that are helping to drive our growth here. Increasingly, corporations are seeking to streamline their balance sheets, reduce costs and maximize the efficiency of their operations. ProLogis has been a real beneficiary of this trend, given the size and quality of our platform in Japan and the strong reputation we've established as a premium industrial facilities provider."

The two-building Sanyo complex in Osaka is located in Hirakata City, approximately 20 kilometers northeast of Osaka's central business district. Combined, the buildings comprise approximately 787,000 square feet (73,100 square meters) of industrial space. The facility in Kobe comprises approximately 101,000 square feet (9,400 square meters) and is situated in Kobe Distribution Park, approximately 12 kilometers northwest of downtown Kobe.

Sanyo is one of the world's largest manufacturers of electronic home appliances, components, business equipment and other products. Sanyo Logistics serves as the company's distribution arm, providing transportation, distribution and other services for Sanyo and a variety of third-party customers. Sanyo currently leases more than 835,000 square feet (77,600 square meters) from ProLogis in both Japan and North America.

Also earlier this week, ProLogis announced it has signed a related agreement with Sanyo to acquire two facilities in Tokyo and in the city of Okayama, near Hiroshima in southwestern Japan. The total investment will be approximately $22 million. Combined, the properties comprise more than 307,000 square feet (28,600 square meters) of industrial space. ProLogis plans to pursue repositioning opportunities at both locations.

ProLogis has established a $2.0 billion platform of industrial facilities in Japan since launching operations there in 2002. Today, the company operates or has under development more than 18 million square feet (1.69 million square meters) of high-quality distribution space in multiple locations concentrated around Tokyo, Nagoya, Osaka/Kobe and Sendai. In addition to Sanyo, customers in Japan include DHL, Hitachi Transport, Matsushita Logistics, Nippon Express, Seiyu Ltd., and Senko Co. Ltd.